FJC(SH:600802)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,616,507,449.75, representing a 22.16% increase compared to CNY 2,960,467,154.23 in 2020[21] - The net profit attributable to shareholders for 2021 was CNY 398,522,871.49, a 43.43% increase from CNY 277,860,027.66 in 2020[21] - The net cash flow from operating activities for 2021 was CNY 461,729,088.09, which is a 13.98% increase compared to CNY 405,097,563.21 in 2020[21] - The total assets at the end of 2021 were CNY 4,646,355,241.00, reflecting a 3.04% increase from CNY 4,509,478,545.75 at the end of 2020[21] - The net assets attributable to shareholders at the end of 2021 were CNY 1,930,058,942.08, a 16.17% increase from CNY 1,661,418,539.68 at the end of 2020[21] - The basic earnings per share for 2021 was CNY 0.870, which is a 43.43% increase from CNY 0.606 in 2020[22] - The weighted average return on equity for 2021 was 21.93%, an increase of 2.80 percentage points from 19.13% in 2020[22] - The net profit after deducting non-recurring gains and losses for 2021 was CNY 384,028,249.76, a 32.73% increase from CNY 289,337,125.01 in 2020[21] Market and Production - The average ex-factory price of cement increased by 6.0% year-on-year, despite a decline in total cement production to 2.38 billion tons, down 0.4% from the previous year[31] - The company achieved a record high in cement production and sales scale, contributing to steady growth in operating performance[32] - The company achieved a production of 8.63 million tons of clinker and 10.82 million tons of cement, representing year-on-year increases of 19.10% and 6.26% respectively[41] - The total sales volume of cement and clinker reached 10.79 million tons, an increase of 6.76% compared to the previous year[41] - The average selling price of products increased by 14.32% year-on-year, reaching 332.04 RMB per ton[41] - The company maintained a market share of 10.4% in the Fujian Province, while achieving breakthroughs in external markets with a total sales volume of 1.61 million tons[38] Costs and Expenses - The company reported a significant increase in energy costs, with energy expenses rising by 69.94% to CNY 1.56 billion, now accounting for 55.87% of total costs[51] - The cement manufacturing segment generated revenue of approximately CNY 3.58 billion, with a year-over-year decrease in gross margin by 2.05 percentage points to 21.81%[48] - The total sales expenses increased by 10.61% to CNY 36.61 million, while management expenses rose by 15.53% to CNY 199.94 million[55] - The cost of raw materials for cement production decreased by 22.63% to CNY 734.54 million, primarily due to reduced clinker purchases[51] Strategic Initiatives - The company is focusing on expanding its market presence outside the province while consolidating its domestic market position[32] - The company plans to continue enhancing its production capacity through ongoing projects and technological upgrades[32] - The company is committed to maintaining a leading position in the regional market through innovation and cost management strategies[32] - The company is focused on energy conservation and emission reduction, aiming for over 30% of its capacity to meet benchmark levels by 2025[36] - The company plans to maintain a market share of 85.41% in Fujian province, focusing on stabilizing market confidence and promoting orderly supply-demand adjustments[82] Environmental and Sustainability Efforts - The company has implemented strict environmental management, ensuring that all emissions indicators are below permitted values for the year 2021[127] - The company operates 7 clinker production lines and 15 cement grinding lines, all equipped with complete dust collection facilities, achieving a 100% operational rate[130] - The company has invested in pollution control facilities, with a running rate of over 99.5% for all environmental protection equipment[130] - The company has achieved a dust removal efficiency of over 99.8% at various material transfer points and storage facilities[130] - The company is committed to green development, with subsidiaries recognized as provincial-level green factories and ongoing efforts in ecological restoration and green mine construction[138] Governance and Management - Chairman Wang Jinxing received a pre-tax compensation of 57.38 million yuan for the reporting period[91] - Total compensation for all listed executives amounted to 551.09 million yuan, with a total of 11,160 shares held by departing executives[91] - The company has maintained a stable executive team with no significant changes in shareholding among current executives[91] - The company has implemented a compensation policy that combines incentives and constraints, linking salary levels to overall business performance and individual contributions[114] - The company has established a performance evaluation mechanism for senior management, ensuring accountability and assessment of responsibilities[120] Future Outlook - In 2022, the company anticipates a challenging environment for the cement industry, with demand expected to decline due to various pressures including environmental regulations and high costs[73] - The company aims to achieve production standards for the Shunchang Lianshi project and accelerate the assessment of the Ansha Phase II project[74] - The company plans to implement cost-cutting measures to improve operating margins by 5% in the upcoming year[96] - The company aims to reduce carbon emissions by 15% over the next three years as part of its sustainability strategy[96] Related Party Transactions - The company engaged in significant related party transactions, including sales of products totaling RMB 9.46 billion (approximately $1.5 billion) to Huaren Cement (Lianjiang) Co., Ltd.[152] - The company has a total of RMB 32.95 million (approximately $5.1 million) in related party transactions for rental and utility services with various entities controlled by its actual controller[153] - The company has reported a total of RMB 10.44 million (approximately $1.6 million) in water and electricity fees paid to Fujian Energy Group Co., Ltd.[153] Audit and Compliance - The company’s financial statements were audited and deemed to fairly reflect its financial position and operating results for the year ended December 31, 2021[184] - The audit report indicates that the auditors have no significant issues to report regarding the financial statements or other information[190] - The company has implemented necessary internal controls to maintain the integrity of financial reporting[191]